The Evolution of Networking
When APC began selling power protection equipment, networking was in its infancy. Most computer users were still transferring data on the 'sneaker net' using 512k floppy disks. As networking began to evolve, users began to use linked PCs to share files and print documents, which gradually increased the importance of the computers and equipment upon which these tasks were transacted. Still, the number of people protecting the hardware and data with UPSs was small.

Initially, the motivation for using APC's products was to protect the hardware itself. As more and more data was passed across networks, APC customers began recognizing the importance and value of the data on their servers and PCs; they quickly began protecting this data as well. As the value of data grew exponentially, the importance of protecting the availability of the network reached critical mass. A growing number of customers cannot tolerate any downtime in their networks.

In the last few years, the value of the data being created, transferred and stored has continued to multiply. Not only is the quantity of data increasing, but E-commerce applications are literally transferring, processing and storing money on the servers they protect. As a result, highly reliable solutions like their Power Array technology are being adopted by industry-leading global enterprises to ensure E-commerce delivers on its promise.

In 1984, when APC built their first UPS, no one at APC could have imagined a better scenario for the Company than what they are seeing today. Data has become money, and it is flying around the globe, without bounds, at an incredible rate of speed. As a company, they could not have hoped for a better business opportunity than one in which network downtime correlates to a loss of revenue.

Global, end-to-end, Nonstop Networking
In 1998, with the convergence of data and revenues in mind, APC put many elements of their objective of providing global, end-to-end, Nonstop Networking solutions into play.

The acquisition of SilconTM, the continued introduction of new products for existing and new markets, geographies and industry trends; the expansion and development of strategic relationships; and, the addition of global manufacturing efforts throughout 1998 all brought them closer to this objective.

One of the many areas of potential growth for the Company going forward is the Enterprise or high-power space. In 1998, efforts there were bolstered by two primary factors: the continued roll out and acceptance of the Symmetra Power Array and the acquisition of Silcon. Overall, Symmetra and its Power Array technology has continued to gain acceptance as the premier high-availability solution for data centers.

The three-phase power protection market addressed by the acquired Silcon products represents an incremental $1.3 billion in potential revenue to APC (source: Venture Development Corporation). They intend to aggressively pursue these new opportunities worldwide while maintaining a watchful eye on the industry trends, customer needs and new markets that define their objectives.